Gold remains steady on Thursday

Shafaq News / Gold prices were rangebound on Thursday, hovering close to a near seven-month high, as investors awaited a key inflation print to gauge whether interest rate cuts in the U.S. would come sooner than expected.

Spot gold was flat at $2,044.30 per ounce by 0728 GMT, trading in a range of about $6. It hit its highest since May 5 on Wednesday, and was poised for its second straight monthly gain.

U.S. gold futures for December delivery fell 0.1% to $2,045.40 per ounce.

"Prices seem to be taking a slight breather in today's session, with some wait-and-see," IG market strategist Yeap Jun Rong said, ahead of the U.S. personal consumption expenditure data - the Federal Reserve's preferred inflation gauge - at 1330 GMT.

"Despite the U.S. Q3 GDP posing an upside surprise overnight, the data failed to sway market rate-cut bets, as sentiments continue to take cues from more recent Fed (officials') comments."

Fed officials this week flagged the possibility of a rate cut in the upcoming months and expected growth to slow down and inflation to continue to ease, dragging yields on 10-year Treasury notes to a two-and-a-half month low of 4.2470%.

Lower interest rates reduce the opportunity cost of holding non-interest-bearing bullion.

Traders have now advanced their bets for a rate cut by the U.S. central bank from an 80% chance in May to a one-in-two chance in March, according to CME's FedWatch tool.

Making gold less expensive for other currency holders, the dollar index (.DXY) drifted near three-month lows, and was set to log its worst monthly performance in a year in November.

(Reuters)